MIS PRESENTATION

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MIS PRESENTATION

• JOB ENLARGEMENT
• ORGANIZATIONAL MERGER

Fermin Lopez Nicky Thunyapoo Jose Ochoa Ihsan
Wakkihuddin
Presented by
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PROJECT QUESTIONS

• What is an example of a Vertical Integrated
• Process?
• What is the definition of a merger?
• What is the period of the first wave of
  mergers
• referred to?

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Definitions to KNOW
Job Enlargement is doing different tasks and not
just the same thing all the time. It may involve
taking on more duties and adds variety to
person's job.
Vertical Integration is the extension of company
activities into stages of production either
upstream or downstream activities.
Horizontal Integration is the acquisition of
additional business activities at the same level
of the value chain.
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PAST OF JOB ENLARGEMENT

• PRODUCTION
• LABOR INTENSIVE PRODUCTION
• MANUAL AND REPETITIVE
• LONGER LEAD TIMES
• VERTICAL INTEGRATED/ASSEMBLY LINE

• OFFICE AND ADMINSTRATION
• PAPER INTENSE ENVIRONMENT
• SLOW COMMUNICATIONS
• 95 RULE
• CENTRALLY PLANNED OPERATIONS

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VERTICAL INTEGRATED PROCESS
ASSEMBLY LINE
FORDS MODEL T

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CHANGES THAT CREATED JOB ENLARGEMENT

• WORKERS BORED
• TECHNOLOGY
• DOMESTIC COMPETITION
• INTERNATIONAL TRADE AND
• FOREIGN COMPETITORS

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PRESENT OF JOB ENLARGEMENT

• PRODUCTION
• MACHINE INTENSIVE PRODUCTION
• REPETITIVE BUT AUTOMATED
• FAST PACED PRODUCTION
• HORIZONTALLY INTEGRATED

• OFFICE AND ADMINSTRATION
• MOSTLY DIGITAL ENVIRONMENT
• FAST AND INSTANT COMMUNICATIONS
• MOSTLY DECENTRALIZED OPERATIONS

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CHANGES THAT WILL MAKE JOB ENLARGEMENT A NECESSITY

• IMPROVED TECHNOLOGY
• INCREASING INTERNATIONAL
• TRADE
• INCREASING COMPETITION

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FUTURE OF JOB ENLARGEMENT

• PRODUCTION
• JOB ENLARGEMENT WILL INCREASE
• MANY JOBS WILL BE ELIMINATED DUE TO
• TECHNOLOGY AND MACHINERY IMPROVEMENTS
• TECHNOLGY WILL CREATE NEW FIELDS AND
• JOBS

• OFFICE AND ADMINSTRATION
• TOTALLY DIGITAL ENVIRONMENT
• INSTANT COMMUNICATIONS
• TOTALLY DECENTRALIZED OPERATIONS

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Mergers and Acquisitions

• The Past

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Mergers and Acquisitions

• Merger - A merger is the combining of two or more
  organizations into one company.

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The First Wave (1893-1907) Merging for Monopoly

• Definition
• Monopoly- A monopoly is a situation in which one
  company controls an industry or is the only
  provider of a product or service.

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The First Wave (1893-1907)Merging for Monopoly

• Birth of monopolistic trusts in late 1890s in US
• In 1882 Rockefeller formed the first oil trust,
  Standard Oil Trust to merge many oil companies
  throughout the west into one single company.
• In 1899 Andrew Carnegie created the Carnegie
  steel company
• In 1901 Morgan bought out Carnegie to create U.S.
  Steel Corporation.

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The Second Wave (1919-1929) Merger for
Oligopoly

• Definition
• Oligopoly- Oligopoly is an economic conditions in
  which there are so few suppliers of a product
  that one suppliers action can have a significant
  impact on prices and its competitors.

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The Second Wave (1919-1929)Merger for Oligopoly

• Oligopoly is a market in which control over the
  supply of a commodity is in the hands of a small
  number of producers.
• Example
• William Durant formed a holding company and
  broadened his product line by merging and buying
  many of the component suppliers of automobiles.
• Result he formed the company known today as GM.

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The Third Wave (1945-1973)The Conglomerate
Merger

• Definition
• Conglomerate - In business a conglomerate is
  defined as a merger consisting of several
  unrelated firms whose merger increases and
  diversifies company assets

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The Third Wave (1945-1973)The Conglomerate
Merger

• Operations were created on a multinational level,
  which created diversification throughout
  companies that acquired other companies outside
  of their industry.
• Example International Telephone and Telegraph
  (ITT) company.
• -President Harold Greens strategic goal was to
  grow by merger, and ITT merged with nearly 250
  companies in the span of a decade, many of them
  in unrelated businesses.

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The Fourth Wave (1980 1993)The Takeover Wave

• Merging became acceptable
• Global Competition -Companies outside the US
  bought US companies.
• Many financial institutions merged
• EXAMPLES
• -Wells Fargo and Crocker National in 1986
• -Daimler/Chrysler

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The Fifth Wave (1993 Present)International
Mergers

• Fueled by change bought on by the Internet,
  there was an accelerated pace of merger activity
  in the late 1990s.
• Megadeals become commonplace all over the
  world in late 1990s.
• EXAMPLE Exxon and Mobil oil company.
• Nations Bank and Bank of
  America.

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Mergers and Acquisitions

• Present

• 58 of merger fails in early 1990s
• Increasing number of mergers
• Ex. ExxonMobil, ConocoPhilips, JP Morgan Chase
• Most Recent Mergers
• Ex. Sears Kmart
• Merged Nov 2004
• Renaming Kmart stores to Sears
• Become 3rd largest retailer
• Increase stock price (gone up since Oct. 2004)

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Mergers and Acquisitions

• Present

• Examples of some factors for successful merger
• Clarify and maximize the goals of merger
• Identify all significant risks
• Hiring the best people both sides and working as
  a team

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Mergers and Acquisitions

• Future

• Mergers takes a long time before succes can be
  properly seen
• Many mergers promise synergy and other benefits
• Cultural Political Conflicts

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Mergers and Acquisitions

• Synergy

Job Enlargement

• Reduction in of employees
• Reduction in operating cost
• Successful mergers benefits from job
  enlargement
• Employees who do multiple task usually remain
  after a merger